GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
H D
HOUSE DRH60450-MEx-11H (3/27)
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Short Title: Vehicle Property Tax Collected By Counties. |
(Public) |
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Sponsors: |
Representative Allred. |
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Referred to: |
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A BILL TO BE ENTITLED
AN ACT to reform the method of collecting property taxes on motor vehicles by requiring the department of motor vehicles to provide a listing of motor vehicles to county assessors who will then collect the property tax due.
The General Assembly of North Carolina enacts:
SECTION 1. S.L. 2005‑294, as amended by Section 31.5 of S.L. 2006‑259, as amended by Sections 3, 4, and 5 of S.L. 2007‑471, and as amended by Sections 22.(a) and 22.(b) of S.L. 2007‑527, is repealed.
SECTION 2. G.S. 105‑330.2 reads as rewritten:
"§ 105‑330.2. Appraisal, ownership, and situs.
(a) Date Determined. – The value of a classified
motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) (registered
vehicles) shall be determined as of January 1 of the year the taxes are due. If
the value of a new motor vehicle cannot be determined as of that date, the
value of that vehicle shall be determined for that year as of the date that
model vehicle is first offered for sale at retail in this State.
The ownership, situs, and taxability of a classified motor
vehicle listed pursuant to G.S. 105‑330.3(a)(1) (registered
vehicles) shall be determined annually as of the day on which a new
registration is applied for or the day on which the current vehicle
registration is renewed, regardless of whether the registration is renewed
after it has expired.
The value of a classified motor vehicle listed pursuant to
G.S. 105‑330.3(a)(2) (unregistered vehicles) shall be determined
as of January 1 of the year in which the motor vehicle is required to be listed
pursuant to G.S. 105‑330.3(a)(2). G.S. 105‑330.3(a).
The ownership, situs, and taxability of a classified motor vehicle listed or
discovered pursuant to G.S. 105‑330.3(a)(2) (unregistered
vehicles) G.S. 105‑312 shall be determined as of January
1 of the year in which the motor vehicle is required to be listed.
(b) Value; Appeal. – A classified motor vehicle shall
be appraised by the assessor at its true value in money as prescribed by G.S. 105‑283.
If the assessor considers the sales price of the motor vehicle in determining
the true value of the motor vehicle, the assessor must not include any amount
for which the taxpayer is liable under Article 5A of this Chapter. The owner of
a classified motor vehicle may appeal the appraised value of the vehicle in the
manner provided by G.S. 105‑312(d) for appeals in the case of
discovered property and may appeal the situs or taxability of the vehicle in
the manner provided by G.S. 105‑381. The owner of a classified motor
vehicle must file an appeal of appraised value with the assessor within 30
90 days after the date of the tax notice prepared pursuant to G.S. 105‑330.5.
Notwithstanding G.S. 105‑312(d), an owner who appeals the appraised
value of a classified motor vehicle shall pay the tax on the vehicle when due,
subject to a full or partial refund if the appeal is decided in the owner's
favor.
(c) Administration. – The Department of Revenue, acting through the Property Tax Division, and the Department of Transportation, acting through the Division of Motor Vehicles, shall enter into a memorandum of understanding concerning the vehicle identification information, name and address of the owner, and other information that will be required on the motor vehicle registration forms to implement the tax listing and collection provisions of this Article."
SECTION 3. G.S. 105‑330.3 reads as rewritten:
"§
105‑330.3. Assessor's duty Duty to list classified motor
vehicles; application for exempt status.
(a) (1) Registered
Vehicles. The assessor shall list, appraise, and assess all taxable classified
motor vehicles for county, municipal, and special district taxes each year in
the name of the record owner as of the day on which the current vehicle
registration is renewed or the day on which a new registration is applied for.
The owner of a classified motor vehicle listed pursuant to this subdivision
need not list the vehicle as provided in G.S. 105‑306; G.S. 105‑312
does not apply to classified motor vehicles listed pursuant to this
subdivision.
(2) Unregistered Vehicles. The owner of a
classified motor vehicle who does not register the vehicle or does not renew
the registration of the vehicle on or before the expiration date of the current
registration shall list the vehicle for taxes by filing an abstract with the
assessor of the county in which the vehicle is located on or before January 31
following the date the unregistered vehicle is acquired or, in the case of a
registration that is not renewed, January 31 following the date the
registration expires, and on or before January 31 of each succeeding year that
the vehicle is unregistered. If a classified motor vehicle listed pursuant to
this section is registered during the calendar year in which it was listed, it
shall be taxed for the fiscal year that opens in the calendar year of listing
as an unregistered vehicle. A vehicle required to be listed pursuant to this
subdivision that is not listed by January 31 shall be subject to discovery
pursuant to G.S. 105‑312.
(a) Listing. – The Department of Transportation, acting through the Division of Motor Vehicles, shall list during the listing period set out in G.S. 105‑307(a) all taxable classified motor vehicles that have been titled in the State. The Division of Motor Vehicles shall separate this list by county and send a listing of all the vehicles titled in each county to the assessor of each county by the last day of the following month. The owner of a classified motor vehicle listed pursuant to this subdivision need not list the vehicle as provided in G.S. 105‑306; G.S. 105‑312 does not apply to classified motor vehicles listed pursuant to this subsection.
(b) The owner of a classified motor vehicle who claims an exemption or exclusion from tax under this Subchapter has the burden of establishing that the vehicle is entitled to the exemption or exclusion. The owner may establish prima facie entitlement to exemption or exclusion of the classified motor vehicle by filing an application for exempt status with the assessor. When an approved application is on file, the assessor shall omit from the tax records classified motor vehicles described in the application.
(c) The owner of a classified motor vehicle that has
been omitted from the tax records as provided in subsection (b) (a)
shall report to the assessor any classified motor vehicle registered in the
owner's name or owned by him that does not qualify for exemption or exclusion
for the current year. This report shall be made within 30 days after the
renewal of registration or initial registration of the vehicle or, for an
unregistered vehicle, on or before January 31 of the year in which the vehicle
is required to be listed by subdivision (a)(2). receipt of a tax notice
omitting the classified motor vehicle. A classified motor vehicle that does
not qualify for exemption or exclusion but has been omitted from the tax
records as provided in subsection (b) (a) is subject to discovery
under the provisions of G.S. 105‑312, except that in lieu of the
penalties prescribed by G.S. 105‑312(h) there shall be assessed a
penalty of one hundred dollars ($100.00) for each registration period that
elapsed before the disqualification was discovered. ($100.00).
(c1) If the owner of a classified motor vehicle moves from one county to another county, the owner shall notify the Division of Motor Vehicles by entering the appropriate information on a form made available by the Division of Motor Vehicles. The Division of Motor Vehicles shall make the corresponding changes to the list required by subsection (a).
(d) The provisions of G.S. 105‑282.1 do not apply to classified motor vehicles."
SECTION 4. G.S. 105‑330.4 reads as rewritten:
"§ 105‑330.4. Due date, interest, and enforcement remedies.
(a) Taxes on a classified motor vehicle listed pursuant
to G.S. 105‑330.3(a)(2) shall be due on September 1 following
the date by which the vehicle was required to be listed. Taxes on a
classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1)
shall be due each year on the following dates:
(1) For a vehicle registered under the
staggered system, taxes shall be due on the first day of the fourth month
following the date the registration expires or on the first day of the fourth
month following the last day of the month in which the new registration is
applied for.
(2) For a vehicle newly registered under the
annual system, taxes shall be due on the first day of the fourth month
following the date the new registration is applied for. For a vehicle whose
registration is renewed under the annual system, taxes shall be due on May 1
following the date the registration expired.
(b) Subject to the provisions of G.S. 105‑395.1,
interest on unpaid taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1)
accrues at the rate of five percent (5%) for the first month following the date
the taxes were due and three‑fourths percent (¾ %) for each month
thereafter until the taxes are paid, unless the notice required by G.S. 105‑330.5
is prepared after the date the taxes are due. In that circumstance, the
interest accrues beginning the second month following the date of the notice
until the taxes are paid. Subject to the provisions of G.S. 105‑395.1,
interest on delinquent taxes on classified motor vehicles listed pursuant to
G.S. 105‑330.3(a)(2) accrues as provided in G.S. 105‑360(a)
and discounts shall be allowed as provided in G.S. 105‑360(c).
(c) Unpaid taxes on classified motor vehicles may be
collected by levying on the motor vehicle taxed or on any other personal
property of the taxpayer pursuant to G.S. 105‑366 and G.S. 105‑367,
or by garnishment of the taxpayer's property pursuant to G.S. 105‑368.
Notwithstanding the provisions of G.S. 105‑366(b), the enforcement
measures of levy, attachment, and garnishment may be used to collect unpaid
taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1)
at any time after interest accrues. Notwithstanding the provisions of G.S. 105‑355,
taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1)
do not become a lien on real property owned by the taxpayer."
SECTION 5. G.S. 105‑330.5 reads as rewritten:
"§ 105‑330.5. Listing and collecting procedures.
(a) For classified motor vehicles listed pursuant to
G.S. 105‑330.3(a)(1), upon receiving the registration lists from the
Division of Motor Vehicles each month, theThe assessor shall prepare
a tax notice for each vehicle; classified motor vehicle titled in the
county; the tax notice shall contain all county, municipal, and special
district taxes due on the motor vehicle. In computing the taxes, the assessor
shall appraise the motor vehicle in accordance with G.S. 105‑330.2
and shall use the tax rates of the various taxing units in effect on the
first day of the month in which the current vehicle registration expired or the
new registration was applied for. January 1. This procedure shall
constitute the listing and assessment of each classified motor vehicle for
taxation. The tax notice shall contain:
(1) The date of the tax notice.
(2) The appraised value of the motor vehicle.
(3) The tax rate of the taxing units.
(4) A statement that the appraised value of the motor vehicle may be appealed to the assessor within 30 days after the date of the notice.
(a1) When a new registration is obtained for a vehicle
registered under the annual system in a month other than December, the assessor
shall prorate the taxes due for the remainder of the calendar year. The amount
of prorated taxes due is the product of the proration fraction and the taxes
computed according to subsection (a). The numerator of the proration fraction
is the number of full months remaining in the calendar year following the date
the registration is applied for and the denominator of the fraction is 12.(b) When
the tax notice required by subsection (a) is prepared, the county tax collector
shall mail a copy of the notice, with appropriate instructions for payment, to
the motor vehicle owner. The county may retain the actual cost of collecting
municipal and special district taxes collected pursuant to this Article, not to
exceed one and one‑half percent (1 1/2%) of the amount of taxes
collected. The county finance officer shall establish procedures to ensure that
tax payments received pursuant to this Article are properly accounted for and
taxes due other taxing units are remitted to the units to which they are due at
least once each month. Each month, a county shall provide reasonable
information to the municipalities and special districts located in it to enable
them to account for the tax payments remitted to them.
(b1) Repealed by Session Laws 1995, c. 329, s. 2.
(c) For classified motor vehicles listed pursuant to
G.S. 105‑330.3(a)(2), the The assessor shall appraise
each classified motor vehicle in accordance with G.S. 105‑330.2.
The assessor shall prepare a tax notice for each vehicle before September 1
following the January 31 listing date; the tax notice shall include all county
and special district taxes due on the motor vehicle. In computing the taxes,
the assessor shall use the tax rates of the taxing units in effect for the
fiscal year that begins on July 1 following the January 31 listing date.
Municipalities shall list, assess, and tax classified motor vehicles listed
pursuant to G.S. 105‑330.3(a)(2) as provided in G.S. 105‑326,
105‑327, and 105‑328 and shall send tax notices as provided in this
section.
(d) The county shall include taxes on classified motor
vehicles listed pursuant to G.S. 105‑330.3(a)(1) in the tax
levy for the fiscal year in which the taxes become due and shall charge the
taxes to the tax collector for that year, unless the tax notice required by
subsection (a) is prepared after the date the taxes are due. If that occurs,
the county shall include the taxes from that notice in the tax levy for the
current fiscal year and shall charge the taxes to the tax collector for that
year."
SECTION 6. G.S. 105‑330.6 reads as rewritten:
"§ 105‑330.6. Motor vehicle tax year; transfer of plates; surrender of plates.
(a) Tax Year. – The tax year for a classified motor
vehicle listed pursuant to G.S. 105‑330.3(a)(1) and registered under
the staggered system begins on the first day of the first month following the
date on which the former registration expires or the new registration is
applied for and ends on the last day of the month in which the current
registration expires. The tax year for a classified motor vehicle listed
pursuant to G.S. 105‑330.3(a)(1) and registered under the annual
system begins on the first day of the first month following the date on which
the registration expires or the new registration is applied for and ends the
following December 31. The tax year for a classified motor vehicle listed
pursuant to G.S. 105‑330.3(a)(2) is the fiscal year that opens
in the calendar year in which the vehicle is required to be listed.
(a1) Change in Tax Year. – If the tax year for
a classified motor vehicle changes because of a change in its registration for
a reason other than the transfer of its registration plates to another
classified motor vehicle pursuant to G.S. 20‑64, and the new tax
year begins before the expiration of the vehicle's original tax year, the
taxpayer may receive a credit, in the form of a release, against the taxes on
the vehicle for the new tax year. The amount of the credit is equal to a
proportion of the taxes paid on the vehicle for the original tax year. The
proportion is the number of full calendar months remaining in the original tax
year as of the first day of the new tax year, divided by the number of months
in the original tax year. To obtain the credit allowed in this subsection, the
taxpayer must apply within 30 days after the taxes for the new tax year are due
and must provide the county tax collector information establishing the original
tax year of the vehicle, the amount of taxes paid on the vehicle for that year,
and the reason for the change in registration.
(b) Transfer of Plates. – If the owner of a
classified motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) transfers
the registration plates from the listed vehicle to another classified motor
vehicle pursuant to G.S. 20‑64 during the listed vehicle's tax year,
the vehicle to which the plates are transferred is not required to be listed or
taxed until the current registration expires or is renewed.
(c) Surrender of Plates. – If the owner of a classified
motor vehicle listed pursuant to G.S. 105‑330.3(a)(1) either
transfers the motor vehicle to a new owner or moves out‑of‑state
and registers the vehicle in another jurisdiction, and the owner surrenders the
registration plates from the listed vehicle to the Division of Motor Vehicles,
then the owner may apply for a release or refund of taxes on the vehicle for
any full calendar months remaining in the vehicle's tax year after the date of
surrender. To apply for a release or refund, the owner must present to the
county tax collector within one year after surrendering the plates the receipt
received from the Division of Motor Vehicles accepting surrender of the
registration plates. The county tax collector shall then multiply the amount of
the taxes for the tax year on the vehicle by a fraction, the denominator of which
is the number of months in the tax year and the numerator of which is the
number of full calendar months remaining in the vehicle's tax year after the
date of surrender of the registration plates. The product of the multiplication
is the amount of taxes to be released or refunded. If the taxes have not been
paid at the date of application, the county tax collector shall make a release
of the prorated taxes and credit the owner's tax notice with the amount of the
release. If the taxes have been paid at the date of application, the county tax
collector shall direct an order for a refund of the prorated taxes to the
county finance officer, and the finance officer shall issue a refund to the
vehicle owner."
SECTION 7. G.S. 105‑330.7 reads as rewritten:
"§ 105‑330.7. List of delinquents sent to Division of Motor Vehicles.
On the tenth first day of each month February,
the county tax collector shall prepare a list with the name and address of the
owner and the vehicle identification number of every classified motor vehicle
listed pursuant to G.S. 105‑330.3(a)(1) G.S. 105‑330.3(a)
on which taxes remain unpaid on that date and on which taxes became due on
the first day of the fourth month preceding that date. unpaid. The
tax collector shall mail that list to the Division of Motor Vehicles. The list
shall be in the form and contain the information required by the Division of
Motor Vehicles."
SECTION 8. This act is effective for taxes imposed for taxable years beginning on or after July 1, 2008.